Benicia’s rejection of oil trains could reverberate across country

By Kurtis Alexander, 9/21/16 5:11pmThe Valero refinery is seen in the background behind signage for a railroad crossing on Wednesday, October 22, 2014 in Benicia, Calif. Photo: Lea Suzuki, The Chronicle

Benicia’s rejection of plans to bring trains filled with crude oil to Valero Corp.’s big refinery in the city was hailed Wednesday by critics of the country’s expanding oil-by-rail operations, who hope the flexing of local power will reverberate across the Bay Area and the nation.

Of particular interest to environmentalists and local opponents, who for years have argued that Valero’s proposal brought the danger of a catastrophic spill or fire, was a last-minute decision by U.S. officials that Benicia’s elected leaders — not the federal government — had the final say in the matter.

Word of that decision arrived just before the City Council, in a unanimous vote late Tuesday, dismissed Valero’s proposal for a new $70 million rail depot along the Carquinez Strait off Interstate 680. Valero had said the project would not only be safe but bring local jobs, tax revenue and lower gas prices.

“We’re pleased with the decision and the implications it will have across the country,” said Jackie Prange, a staff attorney for the Natural Resources Defense Council, one of several groups opposed to the project. “This issue is live in a number of sites across the country. This is definitely a decision that I think cities in other states will be looking to.”

As oil production has boomed across North America, so has the need to send crude via railroad. The uptick in tanker trains, though, has been accompanied by a spate of accidents in recent years, including a 2013 derailment in the Quebec town of Lac-Megantic in which a 72-car train exploded and killed more than 40 people.

The authority of communities to limit oil trains has been clouded by the assertion of some in the petroleum industry that local officials don’t have jurisdiction to get in the way. Companies like Valero have contended that railroad issues are matter of interstate commerce — and hence are the purview of the federal government.

Shortly before Tuesday’s meeting, however, Benicia officials received a letter from the U.S. Surface Transportation Board, which wrote that Valero, based in Texas, was not a railroad company and that the proposed rail terminal fell under city jurisdiction.

“It’s what I was waiting for to help me make my vote more defensible,” said Councilman Alan Schwartzman at the meeting.

Earlier this year, Valero had asked the Surface Transportation Board for “preemption” protection for the project after Benicia’s Planning Commission rejected the proposal. The plan proceeded to the City Council upon appeal.

The plan called for oil deliveries from up to two 50-car trains a day, many passing through several Northern California communities en route from the Bakken shale formation in North Dakota. Those trains would carry as many as 70,000 barrels of oil.

The company billed the project as a way to keep gasoline prices low in the absence of a major oil pipeline serving the West Coast. Crude is currently brought to the Bay Area mostly by boat or through smaller pipelines.

On Wednesday, Valero officials expressed frustration at the city’s decision.

“After nearly four years of review and analysis by independent experts and the city, we are disappointed that the City Council members have chosen to reject the crude by rail project,” spokeswoman Lillian Riojas wrote in an email. “At this time we are considering our options moving forward.”

The vote directly hit the city’s pocketbook. Nearly 25 percent of Benicia’s budget comes from taxes on the oil giant, and the city coffers stood to grow with more crude. The refinery employs about 500 people, according to city records.

But the city’s environmental study showed that oil trains presented a hazard. The document concluded that an accident was possible on the nearly 70 miles of track between Roseville (Placer County) and the refinery, though the likelihood was only one event every 111 years.

The document also suggested that much of the crude coming to the Bay Area from North Dakota, as well as from tar sands in Canada, was more flammable than most.

Several cities in the Bay Area and Sacramento area joined environmental groups in calling for rejection of the project.

“The council’s vote is a tremendous victory for the community and communities all throughout California,” said Ethan Buckner of the opposition group Stand, who was among more than 100 people who turned out for the council’s verdict. “At a time when oil consumption in California is going down, projects like this are unnecessary.”

At least two other plans are in the works for oil delivery by rail elsewhere in the region — in Richmond and Pittsburg. A handful of other proposals have been put forth in other parts of California, including the expansion of a rail spur at a Phillips 66 refinery in San Luis Obispo County, which is scheduled to be heard by the county planning board Thursday.

Prange, with the Natural Resources Defense Council, said this week’s finding by the Surface Transportation Board gives cities the confidence to reject the proposed oil trains, if they wish to do so.

“It reaffirms the power of local government to protect their citizens from these dangerous projects,” she said.

U.S. oil deliveries by rail have grown quickly, from 20 million barrels in 2010 to 323 million in 2015, according to government estimates. In response, federal transportation officials have worked to improve the safety of oil-carrying cars with new regulations.

But over the past year, rail deliveries nationwide have slowed, in part because of the stricter rules as well as local opposition, falling crude prices and new pipelines.

Critics have complained that the tightened rules have fallen short, pointing to incidents like a June train derailment in Mosier, Ore., which spilled hundreds of thousands of gallons of crude into the Columbia River. Leaders in Oregon are discussing a statewide ban on crude trains.

Our view: Benicia washes its hands of us

By Our View | November 15, 2015

The issue: Bay Area city can’t see past its own back yard on refinery project

The city of Benicia — the only entity capable of exerting any control over the crude-oil shipments set to arrive at a planned expansion of a Valero oil terminal — has shown in a draft environmental impact report that any impact the terminal has on communities farther up the train tracks is none of its business.

THE PROPOSED project would allow Valero to transport crude oil to its Benicia refinery on two 50-car freight trains daily on Union Pacific tracks that come right through Davis, Dixon, Fairfield and Suisun City on their way to Benicia. The rail shipments would replace up to 70,000 barrels per day of crude oil currently transported to the refinery by ship, according to city documents.

The original draft EIR, released in 2014, didn’t adequately address safety and environmental concerns. Local governments — including the city of Davis, Yolo County and the Sacramento Area Council of Governments — weighed in on the draft, urging Benicia to take a second look.

Benicia withdrew the draft and went back to work, and the new document acknowledges the risks of pollution, noise and, oh yes, catastrophic explosions from oil trains, the likes of which leveled Lac-Mégantic, Quebec, in 2013.

Disappointingly, having recognized the issues involved, the report simply says there’s no way to mitigate them and recommends moving ahead. With a bureaucratic shrug of the shoulders, the concerns of communities from Roseville to Suisun City are dismissed.

NATURALLY, SACOG disagrees, and so do we. While it’s true that there’s not a lot Benicia can do itself to mitigate the impact of its project, it can force Valero to do something about it.

SACOG urges a raft of measures that are within Valero’s control: advanced notification to local emergency personnel of all shipments, limits on storage of crude-oil tanks in urban areas, funding to train emergency responders, cars with electronically controlled pneumatic brakes, money for rail-safety improvements, implementation of Positive Train Control protocols and, most importantly, a prohibition on shipments of unstabilized crude oil that hasn’t been stripped of the volatile elements that made Lac-Mégantic and other derailments so catastrophic.

Due to federal laws, cities along the railway lines have no ability to control what goes through. Only Benicia, now, while the project is still on the drawing board, has the authority to set reasonable limits and conditions on a project that puts millions of people along the railroad in harm’s way.

We urge the Benicia City Council to use its discretionary authority in this matter to protect those of us who have no say in the process.